The The Uberiz izatio ion of t the c city y and what i it t means f for l local communities Betsy Donald and Anna Moroz, Queen’s University May 3, 2017 B. Donald and A. Moroz Geography and Planning
Outline • Uberization – what is it? • How do geographical concepts illuminate this process? • What impact is it having on our Canadian communities? • Vacuuming money out of the local economy • Changing local regulations • Thriving in an unequal society and precarious labour market • Case Study: Kingston, Ontario • Conclusions B. Donald Geography and Planning
Uberi rizati tion B. Donald Geography and Planning
Uberi rize • verb [ I ] specialized uk usually uberise /ˈuː.bə.raɪz / /ˈuː.bə.raɪz / • to change the market for a service by introducing a different way of buying or using it, especially using mobile technology : • http://dictionary.cambridge.org/ B. Donald Geography and Planning
Uberi rizataion • The process of change in the market for a service • Sometimes called the “sharing economy”, but not about sharing • The innovation is in the role that mobile and ICT technologies (smart phones, GPS, rating and credit card platforms) play in the delivery of services • Companies like Uber and Airbnb are transforming the way consumers connect with service providers and disrupting old models in the process B. Donald Geography and Planning
What m makes Uberi rization work? • Technological innovation • U.S.-style market regimes • Outdated local regulations • Consumer relevancy • convenience • perceived safety • improved quality service B. Donald Geography and Planning
Con oncepts from om U Urban Studies a and G Geog ography B. Donald Geography and Planning
Urban n Geography • Our cities and economies are shaped by global processes, but also the relationship between global and locally contingent factors • Uberization is another example of a long line of economic, technological and social triggers that disrupts city forms and processes (e.g., Fordism, Walmartization, Uberization….) B. Donald Geography and Planning
Th Three d disru rupti tive impacts cts B. Donald Geography and Planning
Vacuum uming ng mo mone ney out o of loc ocal e econ onomy B. Donald Geography and Planning
Vacuumin ing m mon oney ou out of of the e loc ocal l ec econ onomy • The taxi industry for example used to be a classic “basic” service industry (meaning most of the money circulated in the local economy) • Now money is leaving disproportionately to what it contributes • Uber doesn’t own any cars, it doesn’t have any employees or offer any benefits • Uber is an advanced brokerage system B. Donald Geography and Planning
“Asset Light Model” “Try Thi hing ngs, , ask for pe permissio ion later” B. Donald Geography and Planning
Re Re-writ itin ing regula latio ion a at the mu muni nicipa pal l level B. Donald Geography and Planning
• Many of these platform services operate largely outside the conventional vehicle of the state • Upon initial launch of Uber, governments were largely unable to stop its operations because the business was primarily conducted over the internet. • Questions of employment law, consumer protection, unfair commercial practices, tax law, and insurance are common. B. Donald Geography and Planning
• Uber’s has been aggressive in its efforts to fight regulations in certain jurisdictions ($1M in California, up to $1B worldwide) • Cities that reject Uber are made to feel “outdated” “not innovative”, etc. and accused of NIMBYism B. Donald Geography and Planning
Thriving i in a an u unequal society a y and p precarious labou our marke ket B. Donald Geography and Planning
Growing income inequality and precari rity ty • Income inequality in Canada and US has increased over the past 20 years • Precarious work has also increased • These factors are making for ripe conditions for uberization. • Case study: SF B. Donald Geography and Planning
• Uberization has been called “neoliberalism on steroids, creating markets everywhere while also producing a new subjectivity in its participants” (Morozov 2015) • Uberized platforms can compound the growing economic and geographic vulnerability of people that ‘share’ their personal items of great value in the interest of profit. B. Donald Geography and Planning
Case Study: y: K Kingston, Onta tario B. Donald Geography and Planning
Kingst ston • “Th[e] heavy reliance on the public sector affects the city in many profound ways and has implications for how private-sector innovation works, how labour markets operate, and how governance is shaped and plays out in the local economy.” • Donald and Hall (2016, p. 312) B. Donald Geography and Planning
Kingst ston • Uber not yet legal • Queen’s students pushing for Uber • Taxi industry pushing back • Kingston Taxi system - unique regulatory environment • 2 major companies that serve students, seniors and those without cars (usually more vulnerable populations) B. Donald Geography and Planning
The Uber r debate in Kingston in many w ways captures the social dynamics in the city B. Donald Geography and Planning
Impact o on L Local E Econ onomy B. Donald Geography and Planning
Uber r as “innovative” • “So for me…I like the first mover aspect of it, that it is high tech, that they have got an App for it.” Tyler Livey, AMS President B. Donald Geography and Planning
Roy Ambury, Kingston Taxi B. Donald Geography and Planning Magazine, driver 38 years
Mark Gr Green enwood od, CEO of Amey’s Taxi “Amey’s employs 39 full and part-time employees. It has 383 full and part-time drivers, but mostly full-time drivers supporting their respective families and local community. With over 600 hundred people in the industry w e are the third largest local private employer” February 2, 2017 B. Donald Geography and Planning
Amey’s supports m many ch charit itie ies: M Martha’s T Table le, The F e Food od B Bank, Q , Queen’s P Programs, T , Toy Driv ives, Lo , Local l Sports T Teams B. Donald Geography and Planning
Mark Gr Green enwood od, CEO of Amey’s Taxi “Uber here is the Goliath and w e are the David, w orth over 64 $B, paying little or no tax both in Canada or in their home country…thus avoiding paying taxes that go to support roads, schools, hospitals, social programs, etc....If this is globalization and progress, count me out” February 2, 2017 B. Donald Geography and Planning
Re Re-regulating not a always in p public i inter eres est B. Donald Geography and Planning
On U Uber r in Kingston • “They’ll fight every single regulation and they’ll say no one in the world wants those regulations but they you find out five or six hundred others DO want regulation and they will make you look like you are the idiot because you are the only one that wants it but than you find out that they want it here they want it there they want it there. So they are masters of it." B. Donald Geography and Planning
• “Our position was that the KATC should adopt similar regulations [to Ottawa and Toronto] ….Kingston would place a lot more stringent requirements or more difficult for example like having to do your background check in person versus online or having to do two safety checks per year versus…things that you know in Uber’s professional opinion isn’t going to make it more safe …”Tyler Livey AMS Student President, Queen’s University B. Donald Geography and Planning
• “Here is another thing. I hire all the drivers personally… I have had guys come in here and you know they are twitching and I go eee/uhh no, well get back to you. Right. But you can’t tell that from a computer screen... So there is no eye on eye contac t. I mean the drivers will be in here for shift change …I know, even though there are 400 drivers here, I know that there is something is going on with the drivers. They [Uber] have no idea.” • Mark Greenwood, CEO, Amey’s Taxi B. Donald Geography and Planning
Thriving i in a an u unequal socie iety B. Donald Geography and Planning
Conclusions • Uberization is disrupting city services that were once local • Uberization takes different forms in different cities • Three major impacts uberization is having on local communities in Canada include: • Vacuuming money out of local economy • Re-regulating but not always for the better • Thriving in an unequal and precarious labour market B. Donald Geography and Planning
Qu Ques estion ons movi ving g forward • Uberization is here to stay. What form it will take, is still not clear. • Are cities that permit these platforms a sign of openness and innovation? • Is openness to solve one problem, met with a new set of problems? Is uberization creating more precarious jobs? Less local economic activity? More unequal cities in the future? B. Donald Geography and Planning
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